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Update: September 26, 2016

On September 21, 2016, the Honorable George C. Hernandez, Jr. issued the final Statement of Decision, which affirmed the tentative decision denying all claims for relief.  The court denied CBD’s petition for writ of mandate.

Original Post: August 22, 2016

As reported in a previous blog post, Earthjustice, on behalf of the Center for Biological Diversity (“CBD”), filed a lawsuit against the California Division of Oil, Gas, and Geothermal Resources (“DOGGR”) in May 2015.  The lawsuit attacked DOGGR’s emergency rulemaking for aquifer exemption compliance.  Not surprisingly, like all of CBD’s spurious lawsuits attacking DOGGR for implementing its regulatory duties, on August 2, 2016, an Alameda County Superior Court judge issued a tentative ruling denying CBD’s petition for writ of mandate. This is another setback for CBD’s litigation strategy of impeding DOGGR in order to cripple the oil and gas industry.

DOGGR issued the emergency rules in response to a letter from the U.S. Environmental Protection Agency that addressed California’s compliance with the federal Safe Drinking Water Act (“SDWA”) and the Class II Underground Injection Control (“UIC”) program.  Following DOGGR’s issuance of the emergency rules, the EPA stated “[t]he State’s emergency regulations to codify deadlines for injection well operators to cease injection, absent EPA-approved aquifer exemptions, is a critical step in the State’s plan to return the California Class II UIC program to compliance with the SDWA.”  In other words, California regulators were doing what they were supposed to do under the law.Continue Reading Court’s Tentative Decision Sides in Favor of DOGGR in CBD’s Wastewater Injection Lawsuit

This is the second update on environmental regulatory and legal developments in Los Angeles and adjacent counties, as well as the Southern San Joaquin Valley. We welcome your comments and feedback.

South Coast Air Quality Management District:

*Continued Report on New Management: Wayne Nastri, once an SCAQMD Governing Board Member, former USEPA Region IX Regional Administrator and recently an environmental consultant, was appointed acting Executive Director (ED) for the AQMD earlier this year. Some describe him as “a breath of fresh air at the District.” The Governing Board is conducting a nationwide search for a permanent ED, yet has extended Mr. Nastri’s initial 6-month term until February 2017. Mr. Nastri has made a number of staffing changes: Jill Whynot was promoted to Chief Operating Officer, working out of the Executive Office (# 2 position); Laki Tisopulos replaced Mohsen Nazemi as Deputy Executive Officer (DEO) for Engineering and Compliance; Susan Nakamura replaced Jill Whynot as acting assistant DEO for Planning and Rules.
Continue Reading SOUTHERN CALIFORNIA ENVIRONMENTAL UPDATE #2

On August 3, 2016, the Center for Biological Diversity (“CBD”) filed suit against the California Division of Oil, Gas, and Geothermal Resources (“DOGGR”) and the State Water Resources Control Board (“Water Board”), challenging the regulators’ decision to approve an aquifer exemption for the Arroyo Grande oil field.  In its latest lawsuit against DOGGR, filed in the Superior Court for the City and County of San Luis Obispo, CBD alleges that DOGGR and the Water Board failed to conduct environmental review, in violation of the California Environmental Quality Act (“CEQA”).  In order to appreciate the claims in the case, some background is necessary.

The Safe Drinking Water Act and Aquifer Exemptions

The federal Safe Drinking Water Act (“SDWA”), 42 U.S.C. §§ 300g et seq., prohibits injection of fluids that may harm human health into an underground source of drinking water.  An “exempt aquifer” is an aquifer for which protection under the SDWA has been waived because the aquifer does not currently serve as a source of drinking water and could not serve as a source of drinking water in the future due to existing mineral production, depth of the aquifer, or existing contamination.  40 C.F.R § 146.4.  In short, an aquifer is exempt from the SDWA when it could not feasibly serve as a source of drinking water.Continue Reading When Will They Ever Learn? CBD Files Another Questionable Lawsuit Against DOGGR

On July 19, 2016, Alameda County, California (“County”) became the first county in the Bay Area to approve a ban on hydraulic fracturing (or “fracking”).  The County Board of Supervisors unanimously approved the ban through an amendment to the Alameda County Zoning Ordinance (“Ordinance”).  Gen. Ordinance Code §§ 17.06.100-17.06.400.

The Ordinance bans “high-intensity oil operations” which include fracking, steam injection, cyclic steaming, and all other forms of well stimulation.  The Ordinance allows waterflooding and permits an operator to continue oil production by methods authorized under a Division of Oil, Gas and Geothermal Resources (“DOGGR”) permit, if those methods are not banned.  Waterflooding, a technique that includes recycling produced water to the oil reservoir, may be done only by water that is produced from the well itself.  “Produced water” is water that comes to the surface through oil production and oftentimes has no beneficial reuse due to its natural characteristics.  The Ordinance prohibits disposal of hydraulic fracturing fluids, drawing a distinction between produced water and fracking fluids.  “High-intensity oil operations” does not include injection of produced water.Continue Reading Alameda Fracking Ban: All Bark with No Bite

On July 14, 2016, the California Environmental Protection Agency (“EPA”) announced a “landmark set of regulations to strengthen workplace and environmental safety at oil refineries across the state.”  The refinery safety rules consist of two sets of regulations:  one amending the California Occupational Safety & Health (“OSHA”) worker safety regulations as they apply to refineries, and the other revising the California Accidental Release Prevention program (“CalARP”) regulations.  The regulations implement recommendations from Governor Jerry Brown’s Interagency Working Group on Refinery Safety, which was convened following a chemical release and fire at a refinery in August 2012.
Continue Reading Proposed Oil Refinery Regulations Tackle Safety Concerns

June 3, 2016 was the final deadline for oil- and gas-related bills introduced in the 2015-2016 legislative session to move through their house of origin.  Below is a summary of those bills, many of which relate to natural gas storage following the Aliso Canyon natural gas well leak.  Stoel Rives is monitoring these bills and will provide updates as the bills move through the legislative process.
Continue Reading Updated Status of Oil- and Gas-Related Bills Proposed in California’s 2015-2016 Legislative Session

Not to be outdone by its federal counter-parts, the California Air Resources Board (“ARB”) released Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities (“proposed rule”) for methane emissions on Tuesday, May 31, following a slew of recent federal regulations targeting reduction of methane emissions.  Cal. Code Regs. tit. 14, §§ 95665-95676 (proposed).  The federal Bureau of Land Management released proposed regulations for reducing waste and methane emissions in oil and gas operations in January 2016.  Then, in May 2016, the U.S. Environmental Protection Agency also began regulating methane when it released final regulations to curb emissions of methane and volatile organic compounds from additional new, modified, and reconstructed sources in the oil and gas industry.

While methane is the current emissions target for regulators’ greenhouse gas reduction efforts, the oil and gas sector is the industry target.  The proposed rule is part of California’s plan to reduce emissions from short-lived climate pollutants, including methane emissions, by 40-45% by 2025.  This follows the Obama Administration’s similar methane emissions reduction goal.Continue Reading The Other Shoe Just Dropped on Methane Emissions from the Oil and Gas Industry

On May 27, 2016, the Bureau of Ocean Energy Management (“BOEM”) and the Bureau of Safety and Environmental Enforcement (“BSEE”) jointly released a Programmatic Environmental Assessment (“PEA”) for well stimulation treatment activities at operations on the Outer Continental Shelf (“OCS”) of offshore California.  The agencies identified and studied the environmental impacts of 43 lease areas at 23 active wells that could undergo well stimulation treatments, which includes hydraulic fracturing (“fracking”).

As required under the National Environmental Policy Act, the PEA evaluated a range of potential impacts including air quality, water quality, commercial and recreational fisheries, recreation and tourism, and environmental justice.  In conducting the analysis, the agencies adopted definitions contained in California’s Senate Bill 4.  For example, well stimulation treatments “include, but are not limited to, hydraulic fracturing treatments and acid well stimulations.”Continue Reading Part the Seas: Federal Report Finds Offshore Fracking has No Significant Impact

February 19, 2016 was the deadline for lawmakers to introduce legislation to the 2015-2016 California Legislative Session, and the Legislature’s ever-growing appetite for regulating the energy industry in California shows no signs of being satiated anytime soon.  More bills than ever proposing to add new regulations on the oil and gas industry have been introduced.  Below is a summary of those bills, many of which relate to natural gas storage following the Aliso Canyon natural gas well leak.  Stoel Rives is monitoring these bills and will provide updates as the bills move through the legislative process.

ASSEMBLY BILLS

AB 1759 (Bonta): Hydrogen fluoride: notice of use: substitution

This bill would require an owner or operator of an oil refinery that uses hydrogen fluoride, hydrofluoric acid, or modified hydrofluoric acid in its operations to send out biannual notices to each business, school, child care facility, library, church, community facility, senior facility, and residence within a 3.5-mile radius of the refinery.  The cost of the notice must be paid by the owner or operator of the refinery, and the owner or operator must file a copy of the notice and distribution list with the California Air Resources Board.Continue Reading Status of Oil- and Gas-Related Bills Proposed in California’s 2015-2016 Legislative Session

Earlier this week, environmental consultant Susanne Heim of Panorama Environmental and Stoel Rives water lawyer Wes Miliband hosted the second part of the California Water Webinar series about the Sustainable Groundwater Management Act (SGMA).

In this webinar, Susanne and Wes covered implications of the recently adopted emergency regulations to amend groundwater basin boundaries, as well…

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Few firms view their Environment, Land Use, and Natural Resources practices as core legal services. Stoel Rives is one of them. The firm ranks #8 in the United States according to Law360’s list of the largest practices of its kind. Our sophisticated compliance counseling, permitting, regulatory development, and litigation practices continue a long tradition of specialization and deep experience. Our environment, land use, and natural resource attorneys incorporate prior agency experience, technical acumen, and industry knowledge into their legal advice. They also build strong relationships with agency officials and industry associations. Our litigation successes include landmark decisions. More than 60 attorneys, paralegals, and compliance analysts comprise Stoel Rives’ nationwide Environment, Land Use & Natural Resources practice.